The slump in the automotive industry in India

automotive industry

There is no break for the auto sector in India as SIAM (Society of Indian Automobile Manufacturers) data for September clearly shows that passenger vehicle sales jumped by 23.69 percent. The commercial vehicle sales were low by 62.11 percent in September.

This means the crash in the vehicular sale has continued in the eleventh straight month at a time when the country’s auto sector is encountering one of the poorest slowdowns in decades.

As per SIAM data, passenger vehicle sales fell to 2,23,317 units in September from 2,92,660 in the previous year whilst passenger car sales dropped by 33.4 percent to 131,281 units paralleled to the same period in 2018.

A drop in demand in recent months has led to a considerable slowdown in the auto sector of the country which is the fourth largest in the world. A huge job loss is feared in India’s automotive industry, which employs more than 3.5 crore people both directly and indirectly. The auto sector accounts for nearly half of the total manufacturing output of the Indian economy.

To dodge the crisis, several auto companies have resorted to declaring non-working days. This includes leading auto companies such as Maruti Suzuki, Tata Motors and Ashok Leyland. A non-working day like forced leave without pay. This is being done to lessen the production of vehicles in the factories.

The SIAM data shows that the overall passenger vehicle production declined by over 18 percent to 2,79,644 units in September compared to the figure of 3,41,539 units in September last year.

The production of total commercial vehicles dropped by 72.07 percent in September against the same period last year. In terms of export, commercial vehicle sales dropped by 45.06 percent.

 

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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